Research On The Mode And Supporting Institutions Of Rural Housing Mortgage In Chengdu

Recently, with the increasingly fast process of urbanization, the relationship between urban and rural areas as well as the traditional agriculture and village are changing dramatically. The farmers, who have been living in villages for generations and living on agricultural production, began to migrate to and gather in urban business and service industry in large-scale. The significant changes have been taken place in spatial distribution of land and other resources in urban and rural areas correspondingly. Therefore, it is necessary for the rural property institution focused on "famers’rights of use and operation" to transform into a new system centered on "guaranteed rights of negotiation" in time. Based on this situation, in order to get a breakthrough in rural institutional reform, In2008, the Central Committee of Communist Party China issued its "Decision on Some Major Issues Regarding Advancing Rural Reform and Development" at The Third Plenary Session of the17th CPC Central Committee, which endowed farmers with the rights to transfer their farmland and allowed farmers to get substantive land property. As the focus of Chinese new land policy, the rural housing mortgage is not only a simple rural financing approach, but also an institutional signal of easing the improper restrictions to farmers’property rights until completely removing them, waking up rural "sleeping capital", and fulfilling the potential for rural capital appreciation, with the goal to fully realize "returning the right back to farmers" through some institutional arrangements. Taking Chengdu City as an example, this research studied the rural housing mortgage, an innovative product in rural market, by analyzing its current mode and supporting institutional system, in order to find out the problems existing in the progress of its development and to present some relevant policy proposals.This paper firstly reviewed the main research findings of related literatures, and then used the theoretical knowledge, including Theory of Modern Property Ownership and Theory of Institutional Change, for reference. Based on introducing the institutional background of the rural housing mortgage development in China, the definition of this mortgage lending, the basic features, the key elements and the operational procedure of the rural housing mortgage, this paper summed up the development status of rural housing mortgage in Chengdu City and elaborates the main mode and its supporting institutional system of this mortgage to find out the defects of the current institutional system. Regarding to the empirical study, this paper investigated the rural housing mortgage in Chengdu City is conducted by selecting5typical Counties as samples. On one hand, from the perspective of institutional demand, this research investigates the demand of rural households for rural housing mortgage and its supporting institutional system by bringing in the Random Utility Model upon Lowest Expected Cost, based on descriptive analysis of303household questionnaires. The results demonstrate that72.6%of respondents have the both two certificates, while23.4%of respondents have successfully applied the rural housing mortgage. The degree of understanding, the age, the educational years and whether possess arable lands or not are influencing factors of rural housing mortgage application. On the other hand, this research starts with institutional supply, and studies the mode and its supporting institutional system at macro-level through analyzing the interview record of the institution participants including3financial institutions and2guarantors. It can be seen that the construction of risk prevention mechanism is the key work for the development of rural housing mortgage.The main conclusions drawn through this research are in the following:(1)With the current mode and supporting institutional system, the development of rural housing mortgage has obtained certain positive results:completing the institutions of registration, management and pledge of rural housing; broadening the rural financial channels, bringing more credit funds and social funds into rural areas and improving the rural financial environment.(2)There are still some problems needed to improve and complete existing in the current mode and supporting institutional system of rural housing mortgage, which may restrict the long-term healthy development of the mortgage to varying degrees:The identification and registration of rural houses need legal supports; the rural financial environment needed to be further optimized; the role of government playing in the implementation process of rural housing mortgage needed to change; the rural social security system and social stability should be attached more importance to by authorities.